Market overview from globalCoal for June 11

Coal markets started the week on a softer note, with deals going through late on for August DES at $84.90/t DES AR, down from Friday's offer level of $86.50/t. Paper values got hit hard at the front of the curve, with Q3'12 API2 down by $1.75/t, while the same contract on API4 lost around $2.25/t. Cal 13 losses weren't as severe, with API2 off $0.25/t, and API4 down $1.00/t. Oil suffered a loss as well, with front month Brent losing $1.03/bbl to sit at $98.44/bbl near close of play.

Markets in Asian hours have been quiet today due to an Australian public holiday and many traders travelling. Sentiment at the end of last week has prevailed today in so much as physical traders are exceptionally bearish on China, and also on India; sighting full stockpiles and a deteriorating economic climate in China as the main bearish factors. Consensus in Singapore on the Chinese market is that China will largely stay absent from the markets over the next couple of months. As regards to India, defaults are also becoming apparent as a weakening rupee makes imports more expensive - this, combined with fixed power prices, despite falling coal prices, does not lend any support to the market. The general perception in India appears to be firmly that prices are falling which lends itself to Indian bids dropping even further below the market than usual. This sets the scene for a decouplement (however temporary) between Europe and Asia and Physical and paper as Spain gets hand to mouth help and European prices seem more resilient.

globalCoal trades this week

?	Product	Expiry	Price	Volume	Origin	Delivery Point	?Add.Terms
11/06/2012	Phys ARA (DES)???	Aug'12	$ 84.90	50,000	ACPRS	Ams/Rot	?
11/06/2012	Phys ARA (DES)???	Aug'12	$ 84.90	50,000	ACPRS	Ams/Rot	EFP